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Garfield Heights closes fiscal 2025 with $5.9 million general fund balance; officials warn of federal grant freezes
Summary
Board heard a fiscal-year close report showing a $5,900,000 June 30 general-fund balance, ran a deficit for FY25 and was told some federal grant streams are temporarily frozen; board also approved a transfer to a new fund to track severance costs.
The Garfield Heights City School District ended fiscal year 2025 with a June 30 general-fund cash balance of $5,900,000, district finance staff reported Monday as the board prepared to open the new fiscal year.
The report — presented to the Garfield Heights City School District Board of Education during its July 21 meeting — said the district began the year at about $9.4 million and ran a deficit for FY25. The presentation focused heavily on grant funding that the district expects to monitor closely in fiscal 2026.
Mr. Oakley, speaking for district finance staff, said federal and state actions have left several grants "frozen" and that the state Department of Education and Workforce has withdrawn some award funding from the district’s FY26 application even though the district had been substantially approved to spend those dollars. Oakley said Title I funds were not frozen but that Title II-A, Title III and Title IV had been affected.
"Our June 30 cash balance for the general fund was $5,900,000," Oakley said. "We ran a deficit budget this year as we looked at in May with the forecast." He urged the board to monitor grant funds closely and to fully expend FY25 grant allotments before the final expenditure-report due date so the district can use 15-month carryover where applicable.
Oakley described Title IV as a source the district has used for well-rounded-education programs and said the current federal posture could shift which activities the Department of Education will consider eligible. Those comments framed staff recommendations for prudent short-term financial planning.
The board approved a separate fiscal action tied to personnel costs: Resolution 2025-36 to transfer money from the general fund into a newly created Fund 035 so the district can track severance costs for retiring employees who do not opt for the district’s EPC plan. Mr. Oakley described that move as an effort to be more transparent about severance spending, which had previously been recorded in the general fund.
Board members asked for follow-ups on grant timelines and for more detail on severance projections. The district’s superintendent, Dr. Reynolds, and finance staff agreed to provide additional reports and monitoring as federal appropriations and state-level decisions evolve.
No new tax increase was proposed; board leadership reminded the public that a renewal levy will appear on the November ballot and that the renewal is not intended to increase taxes.
What happened next: the board approved the financial report presentation and Resolution 2025-36 by roll call. Members voting "yes" included Miss Cox, Miss Morrison, Missus Daniels and Dr. King. Staff said they will continue to brief the board as grant funding decisions develop.
